rail vikas nigam reported an all-time high net profit of ₹1,462.95 crore for the financial year ended March 31, 2024, marking a 15.38% year-on-year increase. The company’s revenue from operations also reached a record ₹21,732.58 crore, up 7.15% from the previous year. This divergence between top-line and bottom-line growth highlights improved operational efficiency and a successful strategic pivot toward higher-margin competitive bidding projects, which are critical for sustaining long-term profitability in the infrastructure sector.

The Board of Directors, in its meeting on May 17, 2024, approved the audited standalone and consolidated financial results pursuant to Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The statutory auditors conducted the audit for the year ended March 31, 2024, as required under Regulation 33. The results were prepared in accordance with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013. The consolidated figures include data from four subsidiaries, 13 joint ventures, and one associate, though their individual financials were not audited by their respective auditors.

Operational execution remained robust, with the commissioning of 243 kilometers of railway infrastructure in March 2024 alone, including a single-day record of 100 kilometers. Notable completions included the rail-over-rail bridge at Indore Yard and the first-of-its-kind metro station at Majerhat. The company also executed 60 kilometers of tunneling in one year for the Rishikesh-Karnaprayag project. These achievements underscore the company’s enhanced technical capabilities in complex terrain and its ability to deliver large-scale projects efficiently.

What the Numbers Show

The significant outperformance of profit growth over revenue growth indicates a structural improvement in the company’s order book composition. Management emphasized that while traditional nomination projects carry a fixed margin of 8.5%, recent competitive bidding wins have yielded superior returns. For instance, the Indore Metro project delivered a margin of 10.66%, and the Maldives overseas project achieved an 11% margin. Together, these two projects contributed ₹986 crore to turnover, accounting for roughly 45% of the ₹2,255 crore total turnover from bidding projects. This shift suggests that specialized verticals, such as electrical works and signaling, are becoming key profit drivers, with success rates in bidding exceeding 20%.

The company has also adopted the new tax regime under Section 115BAA of the Income Tax Act, 1961, paying corporate income tax at a lower rate of 22% plus applicable surcharge and cess, effective from FY24. This change renders current tax expenses incomparable with previous periods. Additionally, the Board recommended a final dividend of ₹2.11 per equity share, subject to shareholder approval at the Annual General Meeting. The Government of India’s holding stands at 72.84% as of March 31, 2024, following a disinvestment of 5.36% through an Offer for Sale in July 2023.

Rail Vikas Nigam Limited ( rail vikas nigam ) has announced the appointment of Shri N. C. Karmali as a Part-time Government Nominee Director on its Board. The appointment was approved by the President of India and communicated by the Ministry of Railways, Government of India, vide Order No. 2022/PL/57/10 dated May 20, 2024. This addition to the Board strengthens the government’s oversight role within the public sector undertaking.

The appointment is effective with immediate effect. Shri N. C. Karmali will serve in this capacity until he holds the post of Executive Director (Coord.)/ Gati Shakti, Railway Board, or until further orders are issued, whichever occurs earlier. He currently serves as Executive Director (Coord.)/ Gati Shakti at the Railway Board.

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Rail Vikas Nigam Limited disclosed the appointment to the National Stock Exchange of India Ltd. and BSE Ltd. on May 20, 2024. The company stated that it is taking necessary action to complete the appointment formalities in accordance with the Companies Act, 2013. Requisite disclosures regarding the completion of these formalities will be submitted in due course.

Key Details of Appointment

The order was signed by Tribhuvan Misra, Director (PSU), Ministry of Railways. Copies of the order were sent to the Secretary, Department of Public Enterprises; the Secretary, Appointments Committee of the Cabinet; and the Registrar of Companies, Delhi & Haryana, among other stakeholders.